Sri Lanka invites Indian businesses to partner for next phase of economic growth
Daily FT: Sri Lanka’s transition from economic stabilisation to sustainable growth, opportunities for Indian investment and the potential to build stronger partnerships in industry, technology and entrepreneurship were the key themes of the visit of Industry and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe to New Delhi from 22 to 23 October 2026.
The visit brought together high-profile international media engagement, discussions with Indian industry representatives, an exploration of innovation partnerships with the Indian Institute of Technology (IIT) Delhi, and outreach to the diplomatic community. The Deputy Minister also invited Indian businesses to participate in Sri Lanka Expo 2027, the country’s flagship international trade exhibition.
The highlight of the visit was the Deputy Minister’s participation in the NDTV World Summit 2026 on 22 October, where he joined a fireside conversation titled “Sri Lanka’s Economic Reset: Recovery, Resilience and the Road Ahead.” Held under the theme “A World Between Orders,” the Summit brought together political leaders, policymakers, diplomats, business leaders and other prominent international voices.
During the discussion, the Deputy Minister expressed Sri Lanka’s deep appreciation to the Government and people of India for their support during the economic crisis of 2022. Reflecting on the lessons of the crisis, he outlined the progress made in restoring financial stability, restructuring debt and implementing structural reforms. He emphasised that, while Sri Lanka had emerged from the crisis and achieved greater stability, the next challenge was to translate these gains into sustained economic growth.
The Deputy Minister also highlighted the importance of greater integration with global markets. Drawing on India’s experience of gradually opening its economy and strengthening its international economic connections, he pointed to Sri Lanka’s ongoing trade reforms, including the removal of para-tariffs, as part of efforts to improve competitiveness and facilitate further free-trade agreements.
Sri Lanka’s ambition, he explained, extended beyond economic recovery. The country was seeking to position itself as a regional hub for trade, industry, technology, research and development, logistics, value addition and skilled talent. He invited international investors to participate in this transformation, delivering a clear message: “Don’t just support Sri Lanka’s recovery, be part of its growth.”
The Deputy Minister identified manufacturing, agricultural value addition, logistics, renewable energy, marine industries and technology as sectors offering significant potential for collaboration between Sri Lanka and India. He also outlined plans to establish new industrial zones through the Ministry of Industry and Entrepreneurship Development and through the Board of Investment of Sri Lanka to expand industrial capacity and create opportunities for both domestic and international investors.
Emphasising the importance of a more conducive business environment, he highlighted efforts to simplify investment procedures, digitise public services and strengthen regulatory clarity.
Engagement with Indian business leaders representing the Confederation of Indian Industry (CII), the Chamber for Industrial Trade and Economic Cooperation (CITEC), the National Association of Software and Service Companies (NASSCOM) and the Federation for Global Economic and Cultural Relations (FGECR) formed another important dimension of the visit. The meeting on 23 October provided an opportunity to explore how the longstanding relationship between Sri Lanka and India could be translated into stronger industrial, investment and commercial partnerships. Discussions focused on opportunities for Indian businesses to invest in Sri Lanka, collaborate with Sri Lankan enterprises, introduce technology and expertise, and develop stronger links with regional and international markets. Particular attention was given to sectors where the complementary strengths of the two economies could create mutual benefits, including manufacturing, information technology, renewable energy, logistics and value-added production.
OSL take:
Sri Lanka’s economic recovery and renewed focus on export-led growth are creating expanding business and investment opportunities for Indian companies/investors seeking to strengthen their presence in the island nation and access wider regional markets. The longstanding economic relationship between Sri Lanka and India, underpinned by geographical proximity, strong trade links and established business partnerships, provides a foundation for further investment across manufacturing, infrastructure, energy, technology, tourism and services. Indian businesses already have a significant presence in Sri Lanka, with investments spanning telecommunications, banking, hospitality, petroleum distribution, automotive, pharmaceuticals and manufacturing. The success of these ventures demonstrates the potential for further Indian private-sector participation as Sri Lanka moves from economic stabilisation towards sustained growth. Emerging opportunities include renewable energy, particularly solar and wind power, port and logistics infrastructure, pharmaceuticals, food processing, construction materials, information technology and digital services. Sri Lanka’s strategic location along major international shipping routes also offers Indian investors opportunities in maritime services, warehousing, transshipment and export-oriented manufacturing. Ongoing efforts to improve the investment climate, remove para-tariffs, facilitate trade and negotiate further free-trade agreements could strengthen Sri Lanka’s attractiveness as a regional manufacturing and distribution base for Indian companies. The planned Sri Lanka Expo 2027 is also expected to provide a platform for Indian businesses to explore partnerships, identify investment projects and establish commercial links with local enterprises. For Indian businesses/investors, Sri Lanka offers not merely a neighbouring consumer market but also opportunities to participate in the country’s expanding industrial and services sectors while leveraging existing trade arrangements and regional connectivity.
| Article Code : | VBS/AT/20261106Z_4 |